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While China’s first-ever NFT court ruling added stricter burdens to marketplaces and led to some NFT bans, many think it is setting the stage for the growth of the digital asset market in the country.
July 11, 2022 at 03:00 AM
5 minute read
Legal Tech Reporter
The last few years have been quite a journey for nonfungible tokens (NFTs), going from niche art collectibles to marketing tools for major global corporations. To be sure, what often follows hype is regulation.
China became the latest country to offer a key regulatory framework in its first-ever case dealing with NFTs—and the copyright violations they are sometimes saddled with—in Hangzhou Internet Court in April. In its decision, the court held NFT marketplaces liable for poor vetting of copyright violations on its database, imposing stricter burdens on them than on e-commerce platforms that enjoy the protection of the “safe harbor rule.”
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